Extra cash at hand to make some investment

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Reference no: EM131047659

An investor plans to use his extra cash at hand to make some investment. He faces one proposal by a start-up internet company. Here is the detail: he has to invest $25,000 now and will get a return of $5000 per year for 4 years and $2000 a year thereafter forever. If the investor's other investment projects can give him an average ROR=15%. Do you think he will adopt this proposal? Use AW analysis to justify your conclusion.

Reference no: EM131047659

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Extra cash at hand to make some investment : An investor plans to use his extra cash at hand to make some investment. He faces one proposal by a start-up internet company. Here is the detail: he has to invest $25,000 now and will get a return of $5000 per year for 4 years and $2000 a year there..

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